The Federal Security Service (FSB) and the Federal Tax Service (FTS) have disclosed plans to illegally circulate medicinal and food-grade alcohols. According to the report, more than 40 percent of medical alcohol has reportedly moved into the shadow economy since 2020, a finding highlighted by RBC.
During the audit, tax authorities traced raw material streams and finished products, mapping the entire flow of goods and cash. This enabled investigators to pinpoint moments where the intended purpose of payments shifts or where the supply chain loses control. They then calculated the volume of alcohol allocated for medicines, perfumes, cosmetics, and household chemicals that was not used for its intended purpose, revealing a gap between declared production and actual use.
Official figures show that the total volume of alcohol produced for pharmaceuticals and perfumery from 2020 through the first half of 2023 reached 47.1 million deciliters. Of this total, 18.1 million deciliters were designated as medical alcohol and 29 million deciliters as food-grade alcohol. The Federal Tax Service noted that 11.4 million deciliters of the declared volume, including 7.6 million deciliters of medical alcohol and 3.8 million deciliters of food alcohol, may have entered the shadow market.
The investigation also found that some perfume, cosmetics, and household chemical manufacturers exaggerated their recorded output on paper. In reality, only part of the purchased alcohol was used for legitimate production, while the remainder circulated illicitly. The entry point into the shadow economy occurred through channels in Moscow, the Moscow region, and other areas, exposing gaps in oversight across multiple regions.
Earlier reporting noted that drug manufacturers had opposed the application of a consumption tax on medical alcohol, a move that may have influenced industry behavior and tax reporting practices.